Insurer Chubb to acquire Cigna’s business in Asia, Turkey for $5.8 billion

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SINGAPORE (Businesshala) – US insurer Chubb Ltd has agreed to buy health insurer Cigna Corp’s life, accident and supplemental benefits businesses in Asia Pacific and Turkey for $5.75 billion in cash, both insurers said, Asia’s insurance sector. Marking the latest consolidation in

FILE PHOTO: Cigna Corp. on the floor at the New York Stock Exchange (NYSE) in New York, US, July 16, 2019. Displays the logo. REUTERS/Brendan McDermid

In a statement released late Thursday, Chubb said it would acquire Cigna’s A&H (accident and health) and life businesses in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, in addition to Cigna’s 51%. stake in the joint venture in Turkey.

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“The growth in Cigna’s business, which is highly A&H (accident and health), will rebalance our global portfolio towards this important sector,” said Evan Greenberg, Chubb CEO.

Chubb said the acquisition would increase Asia’s share of the global portfolio to $7 billion, written off by about $4 billion in net premium, which excluding China accounts for about 20% of the company’s total business.

The transaction comes at a time of setback in the insurance sector in key markets.

In August, HSBC Holdings agreed to acquire French insurer AXA’s Singapore property here for $575 million.

Last year, Singapore Life, an upstart insurer backed by investors including buyout group TPG, acquired British insurer Aviva’s Singapore business for nearly $2 billion, as it expands into Southeast Asia.

Cigna said Chubb would acquire Cigna’s business in South Korea and continue to operate it under the Lena Korea brand.

Cigna will focus on its global healthcare portfolio as well as local market services in the Middle East, Europe, Hong Kong, Singapore, and its joint ventures in Australia, China and India.

The deal is not subject to financial conditions and Cigna is expected to generate net after-tax income of approximately $5.4 billion.

The transaction, subject to regulatory approval, is expected to be completed in 2022.

Reporting by Anshuman Daga in Singapore and Bhargav Acharya in Bengaluru; Editing by Uttaresh.V & Shri Navaratnam

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